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struggling
13th Jan 2009, 06:57
Stop banging on about why airline management is inept and how they are screwing with your career.

Think Big!

Think ESOP

What is an ESOP?
Answer - It is:

A company share trust that offers at least three-quarters of permanent employees of 3 years standing up to 5% of the firm’s voting shares per individual employee in their employer’s company,
Income tax on the value of shares acquired by employees is deferred for up to ten years and the tax on any growth during that is treated as a capital gain (which is 50% than the comparable income tax rate), and
Should employees agree to sacrifice a portion of their salary, bonus, or profit share into an ESOP, their employer can make matching offers. Eg the company can offer 1 free share for every share purchased by the employee and get a tax deduction for every dollar contributed to its Employee Share Ownership Plan. (ESOP) If you as an airline employee want to have a meaningful say in the way your airline is run and help sway the strategic direction it is going and how it deals with its people; talk to your Union about how it can use ESOP to get a result.

Ex FSO GRIFFO
13th Jan 2009, 07:46
G'Day 'Struggling',

A question....

Would the employees under this plan be able to acquire enough shares to 'force' an issue,

or are the BIG shareholders (read Majority), just TOO big I wonder......

mmmm..... :hmm:

adsyj
13th Jan 2009, 07:59
What do the Tax office say?

Has it got a tax ruling?

sprucegoose
13th Jan 2009, 09:48
This is what they did at United Airlines back around 1997. I don't think it has worked very well for the employees at all but some web research will reveal more. It sounded like a good idea at the time......

struggling
14th Jan 2009, 04:06
Good to see that the Prune Community is sceptical of the suggestion that ESOP can be engaging of labour/financially rewarding and is too good to be true.

Strange as it may seem, the Employee Ownership Group (EOG) supports what is stated in the first post and lists as a member, many of Australia’s biggest companies.

Visit http://www.employeeownershipgroup.com.au (http://www.employeeownershipgroup.com.au/) to find out who and why.

EOG doesn't yet count an Australian airline amongst its members, but there has to be a reason why 23% of companies in France are involved with ESOP but < 5% in Australia are yet onboard.

Old 'Un
14th Jan 2009, 18:51
Interesting that the uptake in France is so high. Wonder if this could have anything to do with the French psyche stemming from the Revolution. (Just a thought).

This type of system isn't too common in Un Zud either, although I have friends who are in such schemes and swear by them.

BTW, that's swear by, not swear at in case you're wondering if it was a typo. :)

Le Vieux

Guava Tree
25th Jan 2009, 08:54
I think we as the pilot workforce will be lucky if we become rich enough to buy 51% of the company's shares like this. OK, suppose we do just that, and we get control of the company's beancounters and order them to pay us our proper salary which is of course at least 100% more than our current pay.
Sure ,we will, at least for a while, enjoy at least double pay, but what will happen to our share investment ? (Clue: Houses appear to be getting bigger)

The Green Goblin
25th Jan 2009, 09:20
Can you imagine 2500 Qantas group pilots at an AGM trying to agree on something?

I'd take good ole retired Darth anyday, or perhaps his protege Luke :)